Perhaps never before had a chief of state launched such an open assault on the monetary power of a friendly nation. Nor had anyone of such stature made so sweeping a criticism of the international monetary system since its founding in 1944. There was Charles de Gaulle last week proclaiming that the primacy of the dollar in international dealings was finished, calling for an eventual return to the gold standard —which the world's nations scrapped 50 years ago — and practically inviting other countries to follow France's lead and cash in their dollars for gold. It was a particularly nettling irritant just as the U.S. was deeply involved in making some hard decisions about its monetary policy...

And reposting my comment on the Nixon video here, so I can track it better:

Those "international speculators" that Nixon was decrying for causing the monetary crisis were just free market actors doing what the free market does: keeping banks and governments honest.

When you suspect that your bank is issuing more notes than they have specie in reserve (gold or silver), you can try to remedy the situation in one of two ways (or ignore it and just let them rob you blind). You can call in the government goons (regulators) who might, if they're not too cozy with the bankers (note that most regulators are from the banking industry), do an audit and discover the truth and penalize them for their fraudulent over-printing. Or you can use the free market remedy: turn in your bank notes, redeeming them for specie, i.e., a bank run. If all the notes are redeemed and the bank is still solvent, you were wrong and no harm done. If the gold runs out before everyone gets the bank notes redeemed the bank goes bankrupt as the fitting penalty for their fraud.

Those "international speculators" were calling our bluff, redeeming FRNs for gold, and Nixon knew that his central bank had fraudulently over-printed to cover his (and previous administrations') spending. Breaking the promise of convertibility into gold was the only way to save face.

What's more valuable, your word or your pride? What do you want more of, Spending or Integrity? Nixon did not choose wisely.

Thanks a lot. Fascinating study in a 'Tricky Dicky' classic and in the history of precious metals! Very interesting how he faltered so badly on the "lay to rest the bugaboo" part. It leads me reiterate that old comic saying of my home country (England) "would you buy a car from this man?". I'd like to ask something off-subject which I normally prefer not to do obviously but I've just applied for blogging rights, will hear back within a few days, & if successful can put such questions to the community. Until then I would very much appreciate it if you have any news of Northern Abitibi or know when we might expect some? And/or can direct me to an independent source that I can visit. I've done my best to research in obscure corners of the internet but can find nothing significant since their last disappointing survey, which you covered. Thanks again for all the great info you post on this site. Your posts are my favorites as I'm very interested in the miners but also that you provide such work free to the community & maintain decorum in the face of some absolutely in(s?)ane criticisms. Fool on!

Billy TG. Really enjoyed the De Gaulle clip too! Whatever the man's flaws, & some very funky colonial actions can be laid at his door, he definitely was a great defender of French culture & oddly enough, in that aspect, an inspiration to others to defend the best elements in all cultures.

Northern Abitibi, good question, it seems to me to be undervalued at this point, but nobody is looking to buy, volume near 0 everyday. Until they come out with big news like the drills found a butt load or they start producing then I do not see much happening. They could be bought out?